Unified Communications Featured Article

Gartner: Midmarket UCaaS to Approach $3B


January 23, 2018

This month, Gartner published a guide for the midmarket unified communications-as-a-service space in North America. It said this space could approach a value of $3 billion by 2021.

The analyst firm noted that Bell Canada, CenturyLink, Evolve IP, Intermedia, Jive, Vonage, and Windstream are among the companies catering to the midmarket with UCaaS solutions. UCaaS spending by the midmarket neared $1.5 billion last year.

Gartner reportedly defines the midmarket as organizations with 100 to 999 employees and with revenues from $50 million to $1 billion.

It says limited budget is the key gating factor to UCaaS investment by midmarket companies. Meanwhile, bundled offerings; clear costs of cloud-based solutions; freemium offerings that enable midmarket customers to get their feet wet with UCaaS; and SD-WAN services, which make it more affordable to support high quality UC across the enterprise all can lower the barrier to UCaaS adoption.

However, in INTERNET TELEPHONY’s fourth quarter 2017 issue, Windstream’s Michael Hoyt writes that most mid-sized companies rely on legacy voice systems while most small and large businesses use cloud-based solutions with unified communications capabilities. He also notes the importance of customized UCaaS strategies; the need for UCaaS strategies with dynamic traffic routing, flexibility, and network diversity; and the fact that organizations need to make plans to secure UCaaS environments.

Meanwhile, Jeremy Duke, Synergy Research Group’s founder and chief analyst, had this to say about UCaaS.

“UCaaS continues to provide a richer and more cost effective collaborative communication system for businesses globally,” says Duke. “We are also seeing an upmarket acceleration of UCaaS adoption, moving from serving mostly smaller sized organizations now to gaining traction in businesses of over 100 seats and over 1,000 seats. Given that the displacement of premise[s] PBXs remains low today, there is ample ground for UCaaS to find strong growth in displacing these legacy systems over a long stretch of time.”




Edited by Mandi Nowitz